Soccer makes big money, especially in Europe, but it is also deep in debt. The million-euro business of soccer, otherwise known as football to the rest of the world outside the U.S., is a corporate juggernaut today. From shoes to jerseys to movies, soccer generates sales, product, jobs, and marketing for thousands and thousands of businesses and people.
Debt Pervades
In Europe alone, soccer spends $5.8 billion through the 10 top European clubs alone. However, this doesn’t mean that soccer clubs are profitable. Many millions are generated from tickets, marketing, sponsorships, commercial spots, and product. However, just as much money is also spent on securing the best possible players for a club and sustaining the salaries of those who are good and need to be retained in the club. As a result, the money goes out faster than it comes in for many major soccer clubs. Of the 20 English Premier outfits, debt on their side of the soccer world generated $4.5 billion alone. Much of this was associated with player salaries and support of their lifestyle to keep them happy and with the team.
Spending Caps
Given how big the salaries have become in the past, the European leagues are now committing that no new salary decisions or contracts will in total exceed 65 per cent of the total gross revenue of the major club. This affects the Championship League as well as both Leagues 1 and 2. That said, the spending will still occur. As long as the market for good players demands high pay, the clubs that want to stay on top will pay it, and their fans will cheer them on with every goal and win.
Third World Countries
Soccer makes big business from marketing and product selling in third world countries, particular with shoes as well as sponsorship. It is quite common for telecommunication companies in particular to pay for their company logos to be emblazoned on team jerseys. The populations, however, can only afford so much, so even with all the marketing, soccer revenues do not generate near as much as the sponsorship side.
The U.S.
In the U.S. soccer as grown tremendously, but it is still a fledgling sport, overshadowed heavily by American sports on the television where the major revenues exist.
Soccer: The game of riches
Posted by Cris K. in Soccer
Debt Pervades
In Europe alone, soccer spends $5.8 billion through the 10 top European clubs alone. However, this doesn’t mean that soccer clubs are profitable. Many millions are generated from tickets, marketing, sponsorships, commercial spots, and product. However, just as much money is also spent on securing the best possible players for a club and sustaining the salaries of those who are good and need to be retained in the club. As a result, the money goes out faster than it comes in for many major soccer clubs. Of the 20 English Premier outfits, debt on their side of the soccer world generated $4.5 billion alone. Much of this was associated with player salaries and support of their lifestyle to keep them happy and with the team.
Spending Caps
Given how big the salaries have become in the past, the European leagues are now committing that no new salary decisions or contracts will in total exceed 65 per cent of the total gross revenue of the major club. This affects the Championship League as well as both Leagues 1 and 2. That said, the spending will still occur. As long as the market for good players demands high pay, the clubs that want to stay on top will pay it, and their fans will cheer them on with every goal and win.
Third World Countries
Soccer makes big business from marketing and product selling in third world countries, particular with shoes as well as sponsorship. It is quite common for telecommunication companies in particular to pay for their company logos to be emblazoned on team jerseys. The populations, however, can only afford so much, so even with all the marketing, soccer revenues do not generate near as much as the sponsorship side.
The U.S.
In the U.S. soccer as grown tremendously, but it is still a fledgling sport, overshadowed heavily by American sports on the television where the major revenues exist.
image: Stefan Körber – Fotolia
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